1. Lessors are required to account for lease receipts from operation leases as a. Revenue,...
70.2K
Verified Solution
Link Copied!
Question
Accounting
1. Lessors are required to account for lease receipts from operation leases as a. Revenue, at the end of the lease term b. Income, on inception date of the lease c. Income, on a straight-line basis over the lease term d. Revenue, on a reducing balance basis over the lease term 2. Customer X enters into a five-year contract with Supplier Y for the right to transport oil from Country A to Country B through Supplier Y's pipeline. The contract provides that Customer X will have the right to use 60% of the pipeline's capacity throughout the term of the arrangement. Is the portion of the pipeline specified in the contract qualifies as an identified asset for purposes of lease accounting? a. Yes, because it is physically distinct. b. Yes, because it represents substantially all of the capacity of the entire pipeline. c. No, because it is not physically distinct and it does not represent substantially all of the capacity of the entire pipeline. d. No, but I don't know why. 3. Which of the following statements is correct regarding the accounting for leases? a. The lessor depreciates the leased asset under a finance lease. b. The lessee depreciates the
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
